Politicians must address ‘broken’ business rates system and ‘outdated’ planning laws as general election looms large

With a UK general election only five weeks away, political parties must rustle up policies that mean retailers can invest in rejuvenating shopping destinations across the UK.

So says Helen Dickinson, Chief Executive at the British Retail Consortium.

Dickinson spoke out as BRC-Sensormatic IQ data showed total UK footfall decreasing by 3.6% in May (YoY), up from -7.2% in April.

High street footfall decreased by 2.7% in May (YoY), up from -6.9% in April.

Retail park footfall was down by 2.3% in May (YoY), up from -6.2% in April.

And shopping centre footfall dropped by 4.5% in May (YoY), up from -7.2% in April.

Dickinson noted that bank holidays and improving weather failed to entice customers to make in person trips to shopping destinations.

She commented: “All locations did improve on the previous month while Birmingham performed best out of the major cities, showing a positive footfall trend.”

“Retailers will be hopeful that a warm summer, coupled with events such as the European Championships and Olympics, will boost footfall across all major shopping destinations across the UK.”

“With an election only five weeks away, political parties have a role to play too by having policies that mean retailers can invest in rejuvenating shopping destinations across the UK.”

“A broken business rates system and outdated planning laws are holding back the industry - politicians of all stripes must address these issues. This will boost economic growth, lift consumer spirits, and help drive more shoppers back to our high streets and other retail destinations.”

Andy Sumpter, Retail Consultant EMEA at Sensormatic Solutions, commented: “Retailers were dealt some good news in May, as footfall recovered against the month before.”

“While no one’s denying this improvement is starting from a low base following a gloomy performance in April, many will be hoping that this represents a turning point.”

“And, with inflationary pressures easing and household budgets starting to feel a little less squeezed, along with the optimism that may come with the general election in July, many may be hoping the mood music has shifted key into something more positive.”

“With lots of opportunities to engage shoppers and benefit from ambient trade from forthcoming major events over the summer, such as the European Football Championships and Olympics, retailers may have just cause for cautious optimism that consumers will vote with their feet and head back to the shops in greater numbers.”

Supermarket election poll

In the run-up to the general election, GlobalData Retail has surveyed shoppers’ voting intentions by their primary supermarket.

3,177 UK consumers took part in the research.

Labour voters are in the majority across all major supermarkets, except Waitrose, with Tesco, Sainsbury’s, Morrisons, Lidl and Aldi shoppers swinging from Conservative to Labour since 2019.

While Conservatives still lead among Waitrose shoppers, the margin has narrowed significantly.

Reform UK has pushed the Liberal Democrats into fourth position in all supermarkets except Sainsbury’s.

Labour is over 20ppts ahead at grocers with a value focus (Asda, Iceland, Aldi and Lidl)

Zoe Mills, Lead Retail Analyst at GlobalData, comments: “If supermarkets were seats, Labour would be on course for a landslide victory, according to our supermarket election poll.”

“Our survey shows that Labour holds a majority at all major supermarkets except the most traditionally Conservative stronghold, Waitrose, where Starmer’s party is just 1.2ppts behind.”

“When we asked the same questions during the 2019 general election campaign, Conservatives held sway in all supermarkets except Asda and the Co-op, having enticed Morrisons’ shoppers to vote blue and holding onto both Aldi and Lidl, which had previously been Labour in our pre-2017 election polls."

Mills adds: “Conservatives are doing comparatively better at M&S and the Co-op, the only supermarkets where they do not trail Labour by double-digit percentage points, and which they might have held were it not for the emergence of Reform UK.”

“The party formerly known as The Brexit Party has overtaken the Lib Dems and is third favourite in all supermarkets except Sainsbury’s. The Green Party is still in fifth place across most locations, but has made some progress, especially in the larger supermarkets.”

“While supermarket owners are generally not shy of sharing their political allegiances, especially in the run-up to elections, they should be mindful of the political make-up of their customers, lest they alienate significant numbers of them.”